IDEAS home Printed from https://ideas.repec.org/p/cer/papers/wp232.html
   My bibliography  Save this paper

Sequencing of Club Enlargement: "big bang," "gradualism," and internal reform

Author

Listed:
  • Michael Kunin

Abstract

In an incomplete contract framework, I analyse how a club chooses its enlargement strategy in the presence of congestion. The club faces two waves of applicants. The applicants are homogeneous within each wave but differ in their conformity to the club's standards across waves. For each wave, the club chooses between an early entry offer, when the club can enforce the applicant's reform, and a late entry offer, when the applicant has to reform itself in order to be admitted. In addition, the club undertakes its own internal reform which, if successful, can eliminate congestion. I show that the club uses the "gradualism" approach (admitting waves sequentially) when the waves substantially differ in their compliance with the club's standards, and the "big bang" approach (admitting waves simultaneously) otherwise. Moreover, the club never admits a less advanced wave before a more advanced one.

Suggested Citation

  • Michael Kunin, 2004. "Sequencing of Club Enlargement: "big bang," "gradualism," and internal reform," CERGE-EI Working Papers wp232, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp232
    as

    Download full text from publisher

    File URL: http://www.cerge-ei.cz/pdf/wp/Wp232.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x, April.
    2. Jorgen Mortensen & Sandor Richter, 2000. "Measurement of Costs and Benefits of Accession to the European Union for Selected Countries in Central and Eastern Europe," wiiw Research Reports 263, The Vienna Institute for International Economic Studies, wiiw.
    3. Baldwin,Richard & Haapararanta,Pertti & Kiander,Jaakko (ed.), 1995. "Expanding Membership of the European Union," Cambridge Books, Cambridge University Press, number 9780521481342, September.
    4. Klaus Wallner & Mike Burkart, 2000. "Club Enlargement: Early Versus Late Admittance," FMG Discussion Papers dp359, Financial Markets Group.
    5. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(24), pages 125-176.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.
    2. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2015. "Political Economy in a Changing World," Journal of Political Economy, University of Chicago Press, vol. 123(5), pages 1038-1086.
    3. Page, William, 2003. "Germany's Mezzogiorno revisited: Institutions, fiscal transfers and regional convergence," Research Notes 9, Deutsche Bank Research.
    4. Ben J Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2014. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 2, pages 37-83, World Scientific Publishing Co. Pte. Ltd..
    5. János Gács, 1999. "Teilprojekt 2: Macroeconomic Developments in the Candidate Countries with Respect to the Accession Process," WIFO Studies, WIFO, number 13584.
    6. Wilhelm Kohler & Chrisran Keuschnigg, 2001. "An Incumbent Country View on Eastern Enlargement of the EU. Part II: The Austrian Case," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(2), pages 159-185, June.
    7. Hjerppe, Reino & Voipio, Iikko & Mäkelä, Pekka, 1998. "Finland as a Member of European Union - First Experiences," Discussion Papers 180, VATT Institute for Economic Research.
    8. Kauppi, Heikki & Widgren, Mika, 2007. "Voting rules and budget allocation in the enlarged EU," European Journal of Political Economy, Elsevier, vol. 23(3), pages 693-706, September.
    9. Wallner, Klaus, 2003. "Specific investments and the EU enlargement," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 867-882, May.
    10. Christian H. Fahrholz, 2007. "Bargaining for Costs of Convergence in the Exchange-Rate Mechanism II," Journal of Theoretical Politics, , vol. 19(2), pages 193-214, April.
    11. Ben J. Heijdra & Christian Keuschnigg, 2000. "Integration and Search Unemployment: An Analysis of Eastern EU Enlargement," CESifo Working Paper Series 341, CESifo.
    12. repec:wsr:wpaper:y:2015:i:136 is not listed on IDEAS
    13. Sulamaa, Pekka & Widgrén, Mika, 2005. "Asian Regionalism versus Global Free Trade: A Simulation Study on Economic Effects," Discussion Papers 985, The Research Institute of the Finnish Economy.
    14. repec:dgr:rugccs:200213 is not listed on IDEAS
    15. Schmidtchen, Dieter & Neunzig, Alexander R. & Schmidt-Trenz, Hans-Jörg, 2001. "One Market, One Law: EU Enlargement in light of the economic theory of optimal legal areas," CSLE Discussion Paper Series 2001-03, Saarland University, CSLE - Center for the Study of Law and Economics.
    16. Jaakko Kiander & Risto Vaittinen & Tiiu Paas, 2002. "The Eastern Enlargement of the Eurozone and Labour Market Adjustment," Eastward Enlargement of the Euro-zone Working Papers wp06, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    17. Svetla Boneva, 2005. "Classification of the Main Economic Costs and Benefits of the EU Enlargement," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 86-99.
    18. Islam, Sulequl, 2003. "Expansions of the European Union and the NAFTA: Implications for New and Non-Member countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(2).
    19. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    20. Doyle, Orla & Fidrmuc, Jan, 2006. "Who favors enlargement?: Determinants of support for EU membership in the candidate countries' referenda," European Journal of Political Economy, Elsevier, vol. 22(2), pages 520-543, June.
    21. Rode, Martin & Gwartney, James D., 2012. "Does democratization facilitate economic liberalization?," European Journal of Political Economy, Elsevier, vol. 28(4), pages 607-619.
    22. Deniz Aksoy, 2010. "Who gets what, when, and how revisited: Voting and proposal powers in the allocation of the EU budget," European Union Politics, , vol. 11(2), pages 171-194, June.

    More about this item

    Keywords

    Transition; Club theory; Incomplete contracts.;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucie Vasiljevova (email available below). General contact details of provider: https://edirc.repec.org/data/eiacacz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.